Six Sigma for Corporate Real Estate

Basic risk management skills

We've been doing a fair amount of work with a client interested in preventing "CNN moments" by understanding where they have operational risk in their portfolio.

In a recent workshop, we spent time with one team to help them understand how to:

1. Identify, analyze, and prioritize risk
2. Translate property risk/issues into business language
3. Communicate risks and action plans to reduce risk

In this particular case, we were focused on business risks emerging from mechanical, electrical, plumbing and other systems -- a pretty wide net.  We talked about everything from water intrusion and the risks associated with energized water pools, to air flow reduction due to engineers having build an elaborate ping pong arena in a lab.

I have to say, the team was pretty into it.  They saw this as a way to make a better case for action on their top priority investments. 

How do you measure flexible space?

This morning, Tom McCarty and I hosted a webcast for several dozen corporate real estate leaders about performance measurement. 

What to measure?  We always start with discussion about what the business feels is important and a translation of existing business priorities to CRE activity.  Being in alignment with the business is the A-1 priority.  In today's webcast we went through the high level alignment activity as well as a deeper cut through the various layers of metrics definition, data collection, dashboard design, and data interpretation.

One question we got from the audience was "How do you measure flexible space?"  We described a few ideas about design requirements and in-flight measurements but the real answer is WHY?  Why do you  want to measure "flexible space?"  The real answer is that you should only be providing flexible space in order to achieve some other business benefit that your internal customers care about...and THAT is what you should be measuring.

Are you providing flexible space in order to speed up team formation in an R&D organization?  (# days to organize team, # days to get a product through various phases of development)

Are you providing flexible space in order to provide just the right amount of space, perhaps in order to achieve cost reduction?  (% asset utilization; $ cost removed from portfolio)

Once you know what your business is really looking for, the ideal metrics become more obvious. 

Have you heard the JLL podcasts?

CHICAGO, Dec 20, 2007 /PRNewswire-FirstCall via COMTEX/ -- In an effort to leverage innovation and technology to serve client demand, Jones Lang LaSalle is launching the industry's first podcast program, dubbed OneView Podcasts. Recent firm research indicates that Jones Lang LaSalle clients want relevant and timely information at their fingertips. Jones Lang LaSalle is now delivering thought-provoking, non-promotional insights from the firm's top executives directly to its clients and subscribers, in an on-demand format through podcasts.

"We're the first real estate company to share individual perspectives in this convenient and succinct format that subscribers can review and evaluate at their own convenience," said Lauralee Martin, Chief Financial and Operating Officer. "The firm is paving the way to give clients 'something to think about' as they tap into their own experience -- and contemplate future trends -- giving clients valuable opinions they can act on."

Jones Lang LaSalle's proprietary audio and video podcasts are short, concise clips -- most lasting less than two minutes -- featuring non-promotional thought leadership on current trends, market realities, dynamics and personal opinions. Subscribers can often link to articles and research for greater context on the podcast topic. Subscribers can anticipate between one and three new podcasts each week.

"Our clients told us they want diverse opinions from the in-house experts they respect when making decisions," said David Johnson, Global Chief Information Officer. "That's precisely what these podcasts deliver. We're leveraging the latest technology platform to provide timely insights that help shape real estate strategies whether the listener is a real estate executive, investor or an asset manager. "

Jones Lang LaSalle's OneView Podcasts can be downloaded to a computer or iPod. Anyone can subscribe by visiting http://podcasts.joneslanglasalle.com, and selecting a preferred format to receive the new podcasts -- by e-mail, over iTunes or as an RSS feed.